Advanced Accounting
Sale of an interest during the accounting period, Upstream Building Sale
Debits Cash Accounts receivable Inventory Land Equipment Investment in Piero SAA Cost of sales Other expenses Dividends Total
Isac SAA 006 S 200 $1,640 $2,100 $3,000 $2,835 $5,800 $200 $17,075
Piero SAA $400 $700 $700 $2,800 $1,400 0 $2,800 $700 $200 $9,700
Credits Accounts payable Common stock Additional paid-in capital Retained Earnings Sales Income from Piero SAA Total
$1,900 $5,000 $50 $2,500 $7,400 $225 $17,075
$1,400 $2,000
$1,800 $4,500 $0 $9,700
ADDITIONAL INFORMATION:
1. On March 31, 2014, Isac SAA sold 20 percent of its ownership in Piero SAA for $900,000.
2. On July 1, 2013, Piero SAA sold equipment to Isac SAA, with a profit of $500,000. The equipment has a remaining useful life of 5 years.
3. The only dividend declared during the year by Piero SAA was on August 1, 2014.
4. Piero SAA income and expenses occurred proportionately during the year.
The year ended December 31, 2014.
